What this calculator does
This page helps you estimate the likely result for HRA Exemption Calculator from the details entered in the calculator below. Treat the output as a planning estimate, not as a substitute for the final filing computation.
Inputs explained
- Basic Salary (Annual): Use the figure relevant to your case and keep the unit consistent with the form.
- Dearness Allowance (Annual): Use the figure relevant to your case and keep the unit consistent with the form.
- HRA Received (Annual): Use the figure relevant to your case and keep the unit consistent with the form.
- Rent Paid (Annual): Use the figure relevant to your case and keep the unit consistent with the form.
- City Type: Use the figure relevant to your case and keep the unit consistent with the form.
How it works / Method
The calculator uses the values you enter, applies the relevant rule logic for this topic, and updates the result summary immediately after calculation.
Formula or calculation logic
Calculate HRA Exemption
HRA Exemption Results
Enter your details above to calculate HRA exemption.
Step-by-step example
- Enter Basic Salary (Annual) as e.g., 600000 for a sample case.
- Enter Dearness Allowance (Annual) as 0 for a sample case.
- Enter HRA Received (Annual) as e.g., 240000 for a sample case.
- Click the calculate button and review the HRA Exemption Results panel.
Use cases
- Review salary or exemption planning before payroll proof submission.
- Check how changing one salary-related input affects the estimate.
- Prepare a cleaner draft working before filing.
Assumptions & limitations
- Results are estimates only and should be checked against the correct FY and AY rules.
- This page does not validate every exemption condition, document requirement, or edge case.
- Verify the latest filing rules before submitting returns, proofs, or tax payments.
Sources & references
How HRA Exemption is Calculated
HRA exemption is the minimum of the following three amounts:
Important: HRA exemption is available only in the Old Tax Regime. If you opt for the New Tax Regime, you cannot claim this exemption.
Examples
Inputs
Basic: ₹6,00,000 | HRA: ₹2,40,000 | Rent: ₹1,80,000 | Metro: Yes
Three Calculations
1. Actual HRA = ₹2,40,000
2. Rent - 10% of Salary = ₹1,80,000 - ₹60,000 = ₹1,20,000
3. 50% of Salary = ₹3,00,000
Exempt HRA (Minimum)
₹1,20,000
FAQs
HRA exemption = Minimum of: (1) Actual HRA, (2) Rent paid - 10% of salary, (3) 50% of salary (metro) or 40% (non-metro).
No, HRA exemption is not available in the new tax regime.
Yes, you can pay rent to parents and claim HRA, provided there is a genuine rental agreement and actual money transfer.
Yes, if annual rent exceeds ₹1,00,000, you must provide landlord's PAN to your employer.